DE PALACIO CALLS ON OIL PRODUCERS TO RELEASE PRESSURE ON PRICES.
Speaking at a Conference on Oil Market Data on 15 July in Madrid, EU Energy Commissioner Loyola de Palacio called on oil-producing countries to "release the pressure" on oil prices. "High prices might currently be good news for oil-producing countries and oil companies, but are far less exciting for the consuming countries", she said. According to the Commissioner, any price target that is not "reasonably close" to the marginal cost of current oil production "will lead to continuing market instability". Although she acknowledged the "legitimate interest" of producing countries to earn "reasonable revenue" from their mineral sources, current oil price levels do "not meet the long-term interest of both consuming and producing nations".The Commission's forecasts suggest that total fossil fuel consumption in the EU could increase by 15% between 1990 and 2010, with...
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